Gloo Holdings, Inc. Reports Third Fiscal Quarter 2025 Financial Results
Rhea-AI Summary
Gloo Holdings (Nasdaq: GLOO) reported third quarter fiscal 2025 results for the period ended Oct 31, 2025, with $32.6M total revenue (up 432% YoY) and $19.8M platform revenue (up 226% YoY). GAAP net loss was $39.0M; non-GAAP net loss attributable to members was $26.7M. Adjusted EBITDA was a negative $19.2M, beating consensus. The company completed acquisitions of XRI Global and Igniter and announced an agreement to acquire Westfall Gold; all are expected to be accretive. $143.1M of convertible debt converted at IPO. Q4 2025 revenue guidance is $28–30M; fiscal 2026 revenue is expected to be greater than $180M.
Positive
- Total revenue +432% YoY to $32.6M
- Platform revenue +226% YoY to $19.8M
- Three acquisitions expected to be accretive
- Secured >20 customers with >$1M annual contract value
- Guidance: fiscal 2026 revenue expected >$180M
Negative
- GAAP net loss of $39.0M
- Adjusted EBITDA negative $19.2M for Q3
- Q4 adjusted EBITDA guidance negative $19.5M to $18.5M
- Material non-cash charges tied to convertible debt in Q3
News Market Reaction 6 Alerts
On the day this news was published, GLOO declined 6.55%, reflecting a notable negative market reaction. Argus tracked a peak move of +2.9% during that session. Argus tracked a trough of -10.9% from its starting point during tracking. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $33M from the company's valuation, bringing the market cap to $477M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 15 | AI benchmark launch | Positive | -3.2% | Introduced FAI-C benchmark measuring Christian-values alignment in large language models. |
| Dec 03 | Earnings date notice | Neutral | -3.4% | Announced timing of fiscal Q3 2025 results and accompanying investor conference call. |
| Nov 25 | AI acquisition | Positive | +0.8% | Acquired XRI Global to add advanced multilingual and voice AI to Gloo AI and Gloo360. |
| Nov 24 | Underwriters’ option | Negative | +0.8% | Underwriters partially exercised option to buy additional IPO shares at $8.00 per share. |
Recent news has shown mixed reactions: some positive developments led to declines, while an acquisition and a dilutive follow-on both saw modest gains.
Over the past month, GLOO moved from IPO-related activity into platform and AI expansion. On Nov 24, an underwriters’ option exercise followed the IPO. On Nov 25, the XRI Global acquisition expanded multilingual AI capabilities. Early December brought an earnings-date notice, and on Dec 15 Gloo introduced the FAI-C AI benchmark. Today’s Q3 earnings and guidance continue the narrative of rapid revenue growth, acquisitions, and AI-led differentiation.
Market Pulse Summary
The stock moved -6.5% in the session following this news. A negative reaction despite strong reported growth would fit prior instances where positive news led to selling, such as the AI benchmark launch that saw a -3.2% move. Investors may focus on the wider net loss of $39.0M and continued negative adjusted EBITDA of $19.2M, even though it beat expectations. The stock trading below its 200-day MA at $8.03 could also frame sentiment as cautious while the market weighs execution and acquisition integration risks.
Key Terms
non-GAAP financial
adjusted EBITDA financial
annual contract value financial
Regulation S-K regulatory
AI-generated analysis. Not financial advice.
"Q3 marks a solid start as a public company. We delivered very strong revenue growth and continued progress toward profitability, while strategically expanding our platform through the acquisitions of XRI Global and Igniter," said Scott Beck, CEO of Gloo. "We believe these additions, along with today's announcement that we are acquiring Westfall Gold, will deepen our donor engagement services and significantly advance the AI capabilities we are providing to customers. We remain focused on disciplined execution as we serve those who serve and build the trusted infrastructure for the faith and flourishing ecosystem."
Third Quarter 2025 Financial Highlights and Recent Events
- Total revenue of
$32.6 million 432% year over year, and increase of$26.4 million $24.0 million - Platform revenue totaled
$19.8 million 226% year over year, an increase of$13.7 million - Platform Solutions revenue of
$12.7 million $12.7 million
- Platform revenue totaled
-
$143.1 million of debt successfully converted at the time of the IPO in Q4. - Net loss of
$39.0 million $13.6 million $26.7 million - Adjusted EBITDA of negative
$19.2 million $23.0 million $10.2 million
"We're pleased with our Q3 financial performance, including significant revenue growth. We believe our acquisition strategy is proving effective, as these acquisitions will be accretive and strengthen our position in high-value areas of the ecosystem," said Paul Seamon, CFO of Gloo. "We expect to end 2025 on a positive note and next year we expect strong year-over-year revenue growth and are committed to achieving adjusted EBITDA profitability in Q4 of fiscal year 2026, coupled with disciplined capital allocation as we scale the Gloo platform and deliver value to stockholders."
Business Highlights
- Strategic Acquisitions - Gloo recently announced three acquisitions that will further increase the value and reach of the Gloo platform. All three acquisitions are expected to be accretive.
- Westfall Gold - entered into a definitive agreement to acquire a leading platform for major donor engagement in the faith and flourishing ecosystem, expanding Gloo's capabilities in donor development and strengthening synergies with Masterworks, acquired earlier this year.
- XRI Global - completed the acquisition of an AI innovator specializing in advanced voice and multilingual technologies, expanding the revenue opportunity for Gloo AI and Gloo360.
- Igniter - completed the acquisition of a media innovator serving churches for over two decades. This acquisition combines Gloo's digital infrastructure and AI with Igniter's extensive, high-quality media library, enabling churches of all sizes to communicate the Gospel with greater clarity and ease.
- Key Customers
- So far in 2025 Gloo has secured over 20 customers that will each contribute over
$1 million - Signed a multi-year, enterprise-level engagement with American Bible Society, leveraging both Gloo360 and Masterworks to modernize American Bible Society's technology infrastructure and mass fundraising operations.
- Announced strategic initiative, with YouVersion as a key partner, to develop the world's first biblically aligned AI.
- Other key customers this quarter include Biblica, United Way of
Greater Atlanta and Project Rescue.
- So far in 2025 Gloo has secured over 20 customers that will each contribute over
- Advancing AI
- Launched the Flourishing AI Christian (FAI-C) Benchmark, part of a broader benchmarking framework supporting values-aligned AI adoption across the ecosystem.
- Hosted the Gloo AI Hackathon, bringing together more than 700 developers to build Kingdom-aligned AI solutions.
Fiscal Year 2025 Outlook
Gloo expects revenue for the fourth quarter of its fiscal year 2025 to be between
Gloo has not provided a reconciliation of its forward outlook for Adjusted EBITDA to its most directly comparable GAAP financial measure in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. Gloo is unable to predict with reasonable certainty the amount and timing of adjustments that are used to calculate this non-GAAP financial measure, particularly related to interest expense and changes in fair value of certain financial instruments, as well as equity-based compensation and employee stock transactions and related tax effects.
Conference Call Information
Gloo will conduct a conference call with analysts and investors to discuss its third quarter fiscal 2025 financial results and current financial prospects today at 5 p.m. ET. Participants may access the conference call via webcast using this link: Gloo Webcast Link. The webcast will be recorded and available for replay. The link and recording will also be available on the Investor Relations section of Gloo's website at investors.gloo.com.
About Gloo Holdings, Inc.
Gloo is a leading technology platform for the faith and flourishing ecosystem, providing values-aligned AI, resources, insights and funding so people and communities flourish and organizations thrive. Gloo serves over 140,000 faith, ministry and nonprofit leaders and is based in
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the
Non-GAAP Financial Measures
To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in
Gloo uses Adjusted EBITDA to evaluate its core operating performance, support planning and forecasting, and assess strategic opportunities. In addition, Gloo may use Adjusted EBITDA in its incentive compensation programs applicable to some of its employees. Accordingly, Gloo believes that Adjusted EBITDA may provide useful information to investors about its business and financial performance, enhance its overall understanding of our past performance and future prospects, and allow for greater transparency with respect to this measure used by Gloo management in their financial and operational decision making.
Adjusted EBITDA is defined as net loss adjusted to exclude (1) interest expense, (2) income tax expense (benefit), (3) depreciation and amortization, (4) equity-based compensation, (5) financing and restructuring costs, (6) impairment of goodwill, (7) loss (gain) from change in fair value of financial instruments, (8) loss on extinguishment of debt, (9) income (loss) from equity method investments, net, (10) interest income, and (11) other non-cash or non-routine items that are not reflective of Gloo's core operating results.
Gloo also presents non-GAAP net loss attributable to members of Gloo Holdings, LLC, and non-GAAP net loss per unit available to members of Gloo Holdings, LLC, basic and diluted, because it believes that these measures may similarly provide useful information to investors about its business and financial performance, enhance its overall understanding of our past performance and future prospects, and allow for greater transparency with respect to this measure used by Gloo management in their financial and operational decision making. Management also believes that these measures are commonly used by securities analysts, investors and other interested parties in the evaluation of the Company's performance.
Non-GAAP net loss attributable to members of Gloo Holdings, LLC and non-GAAP net loss per unit available to members of Gloo Holdings, LLC, basic and diluted, are defined as net loss attributable to members of Gloo Holdings, LLC and net loss per unit available to members of Gloo Holdings, LLC, basic and diluted, respectively, adjusted to exclude the impact of (1) loss (gain) from change in fair value of financial instruments, (2) loss on extinguishment of debt, (3) other non-routine items, such as IPO related costs, and (4) the income tax expense (benefit) impact of other adjustments, if any. Non-GAAP net loss per unit available to members of Gloo Holdings, LLC, basic and diluted, includes adjustments made to (
The non-GAAP financial measures included in this press release are not measurements of financial performance under
Gloo Holdings, LLC | ||||||||
October 31, | January 31, | |||||||
2025 | 2025 | |||||||
(in thousands, except unit data) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 15,134 | $ | 13,592 | ||||
Restricted cash | 255 | 252 | ||||||
Accounts receivable, net of allowance for credit losses of | 8,005 | 623 | ||||||
Inventory | 1,303 | 1,460 | ||||||
Contract assets | 5,004 | — | ||||||
Prepaid expenses and other current assets | 9,336 | 2,388 | ||||||
Total current assets | 39,037 | 18,315 | ||||||
Property and equipment, net | 3,650 | 2,303 | ||||||
Capitalized software, net | 28,768 | 23,578 | ||||||
ROU operating lease asset | 8,041 | 3,835 | ||||||
Long-term investments | 100 | 33,252 | ||||||
Other non-current assets | 1,372 | 209 | ||||||
Intangible assets, net | 31,971 | 11,431 | ||||||
Goodwill | 93,761 | 27,901 | ||||||
Total assets | $ | 206,700 | $ | 120,824 | ||||
LIABILITIES, MEZZANINE EQUITY, AND MEMBERS' DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 9,289 | $ | 3,613 | ||||
Accrued compensation | 6,852 | 4,538 | ||||||
Accrued liabilities | 11,530 | 3,521 | ||||||
Acquisition-related liabilities, current | 2,039 | 1,350 | ||||||
Deferred revenue | 8,889 | 3,725 | ||||||
Debt, current (4) | 7,231 | 3,177 | ||||||
Lease liabilities, current | 1,582 | 685 | ||||||
Total current liabilities | 47,412 | 20,609 | ||||||
Acquisition-related liabilities, non-current | 723 | 100 | ||||||
Debt, non-current | 162,653 | 66,959 | ||||||
Lease liabilities, non-current | 6,728 | 3,095 | ||||||
Derivative liability | 33,673 | 832 | ||||||
Deferred income taxes | 2,839 | 1,911 | ||||||
Other non-current liabilities | 10,801 | 13,426 | ||||||
Total liabilities | $ | 264,829 | $ | 106,932 | ||||
Mezzanine Equity: | ||||||||
Series A Preferred Units (no par value; 39,250,615 authorized as of October 31, 2025 and January 31, 2025; 38,523,781 | 364,411 | 351,887 | ||||||
Redeemable noncontrolling interests | 3,233 | — | ||||||
Total mezzanine equity | 367,644 | 351,887 | ||||||
Members' Deficit: | ||||||||
Common member units (no par value; 13,217,025 units authorized as of October 31, 2025 and January 31, 2025, | — | — | ||||||
Additional paid-in capital | 31,555 | 23,591 | ||||||
Accumulated deficit | (476,112) | (368,312) | ||||||
Accumulated other comprehensive income | 189 | — | ||||||
Deficit attributable to members of Gloo Holdings, LLC | (444,368) | (344,721) | ||||||
Equity attributable to noncontrolling interests | 18,594 | 6,726 | ||||||
Total members' deficit | (425,774) | (337,995) | ||||||
Total liabilities, mezzanine equity, and members' deficit | $ | 206,700 | $ | 120,824 | ||||
Gloo Holdings, LLC | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 31, | October 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
(in thousands, except unit and per unit data) | ||||||||||||||||
Revenue: | ||||||||||||||||
Platform revenue | $ | 19,824 | $ | 6,087 | $ | 37,065 | $ | 16,550 | ||||||||
Platform solutions revenue | 12,728 | 36 | 23,962 | 157 | ||||||||||||
Other revenue | — | — | — | 13 | ||||||||||||
Total revenue | 32,552 | 6,123 | 61,027 | 16,720 | ||||||||||||
Operating expenses: | ||||||||||||||||
Cost of revenue (exclusive of depreciation and amortization) | 24,847 | 4,938 | 45,815 | 14,332 | ||||||||||||
Product development | 6,136 | 3,852 | 16,866 | 9,957 | ||||||||||||
Sales and marketing | 8,144 | 5,317 | 23,967 | 16,141 | ||||||||||||
General and administrative | 17,272 | 2,779 | 39,478 | 10,314 | ||||||||||||
Depreciation and amortization | 2,846 | 1,949 | 8,046 | 5,560 | ||||||||||||
Total operating expenses | 59,245 | 18,835 | 134,172 | 56,304 | ||||||||||||
Operating loss | (26,693) | (12,712) | (73,145) | (39,584) | ||||||||||||
Other expense (income): | ||||||||||||||||
Interest expense | 6,390 | 1,779 | 12,393 | 2,854 | ||||||||||||
Other expense (income), net | (210) | (343) | (330) | (537) | ||||||||||||
Loss (gain) from change in fair value of financial instruments | 9,067 | (538) | 20,503 | (758) | ||||||||||||
Loss on extinguishment of debt | — | — | 7,473 | — | ||||||||||||
Total other expense (income), net | 15,247 | 898 | 40,039 | 1,559 | ||||||||||||
Net loss before income taxes | (41,940) | (13,610) | (113,184) | (41,143) | ||||||||||||
Income tax (expense) benefit | 25 | 148 | 318 | 560 | ||||||||||||
Income (loss) from equity method investments, net | 2,888 | (164) | 2,782 | (437) | ||||||||||||
Net loss | (39,027) | (13,626) | (110,084) | (41,020) | ||||||||||||
Less: net loss attributable to noncontrolling interests | (978) | — | (2,285) | — | ||||||||||||
Net loss attributable to members of Gloo Holdings, LLC | $ | (38,049) | $ | (13,626) | $ | (107,799) | $ | (41,020) | ||||||||
Net loss per unit available to members of Gloo Holdings, LLC, | $ | (6.08) | $ | (2.41) | $ | (15.98) | $ | (7.34) | ||||||||
Weighted-average common units used to compute net loss per unit | 8,282,512 | 7,769,167 | 8,239,088 | 7,643,420 | ||||||||||||
Gloo Holdings, LLC | ||||||||
Nine Months Ended October 31, | ||||||||
2025 | 2024 | |||||||
(in thousands) | ||||||||
Operating activities: | ||||||||
Net loss | $ | (110,084) | $ | (41,020) | ||||
Adjustments to reconcile net loss attributable to common members to net cash used in | ||||||||
Equity-based compensation expense | 4,928 | 3,441 | ||||||
Depreciation and amortization | 8,046 | 5,560 | ||||||
Amortization of deferred financing costs | 3,016 | 382 | ||||||
Provision for expected credit losses | 145 | 45 | ||||||
Lease expense | 1,169 | 866 | ||||||
Deferred income taxes | (466) | (560) | ||||||
Loss (gain) from change in fair value of financial instruments | 20,503 | 758 | ||||||
Loss (gain) on sale of property and equipment | - | 18 | ||||||
(Income) loss from equity method investments, net | (2,782) | 436 | ||||||
Loss on extinguishment of debt | 7,473 | — | ||||||
Debt assumed through PIK interest | 1,899 | 778 | ||||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||||
Accounts receivable | (3,440) | (742) | ||||||
Prepaid expenses and other current assets | 177 | (150) | ||||||
Other non-current assets | (4,776) | (74) | ||||||
Accounts payable | 3,987 | (503) | ||||||
Accrued expenses and other current liabilities | 9,081 | (1,658) | ||||||
Deferred revenue | (1,132) | 1,253 | ||||||
Other non-current liabilities | (698) | (2,068) | ||||||
Net cash used in operating activities | (62,954) | (33,238) | ||||||
Investing activities: | ||||||||
Purchases of property and equipment | (453) | (266) | ||||||
Capitalized internal-use software costs | (10,076) | (4,484) | ||||||
Acquisitions, net of cash acquired | (6,351) | (1,491) | ||||||
Net cash used in investing activities | (16,880) | (6,241) | ||||||
Financing activities: | ||||||||
Payments on debt | (2,495) | (190) | ||||||
Proceeds from debt | 81,925 | 45,680 | ||||||
Payments of deferred financing costs | (85) | (87) | ||||||
Proceeds from exercise of common unit options | 564 | — | ||||||
Proceeds from Member Advances received, net of refunds | 5,000 | — | ||||||
Proceeds from Series A Preferred Units issuance | 818 | 325 | ||||||
Payments of deferred offering costs | (4,094) | — | ||||||
Net cash provided by financing activities | 81,633 | 45,728 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (254) | — | ||||||
Net increase in cash, cash equivalents and restricted cash | 1,545 | 6,249 | ||||||
Cash, cash equivalents, and restricted cash: | ||||||||
Beginning of period | 13,844 | 13,727 | ||||||
End of period | $ | 15,389 | $ | 19,976 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest | $ | 3,178 | $ | 1,966 | ||||
Cash paid for taxes | 49 | — | ||||||
Supplemental disclosure of non-cash investing and financing activity: | ||||||||
ROU assets obtained in acquisitions | $ | 2,206 | $ | — | ||||
ROU assets obtained in exchange for new lease liabilities | 1,315 | — | ||||||
Gloo Holdings, LLC | |||||||||||||||
The following tables provide a reconciliation of our non-GAAP financial measures to their most directly comparable GAAP financial | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
October 31, | October 31, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
(in thousands) | |||||||||||||||
Net loss attributable to members of Gloo Holdings, LLC | $ | (38,049) | $ | (13,626) | $ | (107,799) | $ | (41,020) | |||||||
Net loss attributable to noncontrolling interests | (978) | — | (2,285) | — | |||||||||||
Net loss | (39,027) | (13,626) | (110,084) | (41,020) | |||||||||||
Adjusted to exclude: | |||||||||||||||
Interest expense | 6,390 | 1,779 | 12,393 | 2,854 | |||||||||||
Income tax benefit | (25) | (148) | (318) | (560) | |||||||||||
Depreciation and amortization | 2,846 | 1,949 | 8,046 | 5,560 | |||||||||||
Equity-based compensation | 1,623 | 564 | 4,928 | 3,410 | |||||||||||
Loss (gain) from change in fair value of financial instruments | 9,067 | (538) | 20,503 | (758) | |||||||||||
IPO related costs | 2,251 | — | 3,621 | — | |||||||||||
Transaction related bonuses | 732 | — | 732 | — | |||||||||||
Loss on extinguishment of debt | — | — | 7,473 | — | |||||||||||
(Income) loss from equity method investments, net | (2,888) | 164 | (2,782) | 437 | |||||||||||
Interest income | (178) | (337) | (310) | (519) | |||||||||||
Adjusted EBITDA | $ | (19,209) | $ | (10,193) | $ | (55,798) | $ | (30,596) | |||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
October 31, | October 31, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
(in thousands, except for unit and per unit data) | |||||||||||||||
Net loss | $ | (39,027) | $ | (13,626) | $ | (110,084) | $ | (41,020) | |||||||
Net loss attributable to noncontrolling interests | (978) | — | (2,285) | — | |||||||||||
Net loss attributable to members of Gloo Holdings, LLC | (38,049) | (13,626) | (107,799) | (41,020) | |||||||||||
Adjusted to exclude: | |||||||||||||||
Loss (gain) from change in fair value of financial instruments | 9,067 | (538) | 20,503 | (758) | |||||||||||
IPO related costs | 2,251 | — | 3,621 | — | |||||||||||
Loss on extinguishment of debt | — | — | 7,473 | — | |||||||||||
Income tax impact(1) | — | — | — | — | |||||||||||
Non-GAAP net loss attributable to members of Gloo Holdings, LLC | (26,731) | (14,164) | (76,202) | (41,778) | |||||||||||
Less: Undeclared cumulative dividends on Series A Preferred Units | 5,581 | 5,071 | 16,465 | 15,079 | |||||||||||
Less: Deemed dividend for conversion of Member Advance | 6,700 | — | 7,400 | — | |||||||||||
Non-GAAP net loss available to members of Gloo Holdings, LLC basic | $ | (39,012) | $ | (19,235) | $ | (100,067) | $ | (56,857) | |||||||
Weighted average number of common units outstanding, basic and | 8,282,512 | 7,769,167 | 8,239,088 | 7,643,420 | |||||||||||
Net loss per unit available to members of Gloo Holdings, LLC, basic | $ | (6.08) | $ | (2.41) | $ | (15.98) | $ | (7.34) | |||||||
Non-GAAP net loss per unit available to members of Gloo Holdings, | $ | (4.71) | $ | (2.48) | $ | (12.15) | $ | (7.44) | |||||||
_____________________________ |
(1) The adjustments to net loss attributable to members of Gloo Holdings, LLC relate to accounting transactions that are exclusive to Gloo Holdings, LLC, a nontaxable entity. |
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SOURCE Gloo
FAQ
What were Gloo (GLOO) Q3 2025 total and platform revenues?
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